EDEN INNOVATIONS LTD — Interim / Quarterly Report 2021

Aug 30, 2021

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ACN 109 200 900

Appendix 4E Unaudited Preliminary Financial Report Year Ending 30 June 2021

The current reporting period is the year ended 30 June 2021. The previous corresponding period is the year ended 30 June 2020.

Results for announcement to the market:

		30 June 2021 $000’s	30 June 2020 $000’s	% Change	Up / Down
2.1	Revenue from ordinary activities	3,283	2,427	35%	Up
2.2	Loss from ordinary activities after tax attributable to shareholders	(5,759)	(9,106)	37%	Down
2.3	Loss for the year attributable to shareholders	(6,649)	(8,624)	23%	Down

Operating Results

Revenues grew in spite of the significant global impact of the COVID-19 pandemic and the loss from ordinary activities for the year fell due to lower operating costs and increased sales.

	30 June 2021 $000’s	30 June 2020 $000’s	% Change
EdenCrete® Sales	1,755	1,498	17%
OptiBlend® Sales	1,528	929	64%
Total Sales	3,283	2,427	35%

Financial Position

During the financial year, net assets of the company and its controlled entities increased by $2.4 million from $15.7 million as at 30 June 2020 to $18.1 million as at 30 June 2021 primarily a result of capital raisings during the year.

Dividends and Other Returns to Shareholders

No dividends are proposed and no dividends were declared or paid during the current or prior period. There were no share buy backs or proposed share buy backs during the financial year.

Net tangible assets per share

	30 June 2021	30 June 2020
Net tangible*assets per share	$0.0043	$0.0044

* - This does not include any value for Eden’s investment in its pyrolysis, EdenCrete® or Optiblend® technology as these are intangible assets.

Audit

This preliminary financial report is based on accounts which are in the process of being audited. No disputes or qualifications are likely to occur. As the company and its controlled entities are currently reliant on raising capital to continue as a going concern and given the net working capital deficiency at reporting date, an emphasis of matter paragraph, which is not a qualification, regarding going concern may be included in the audit report.

This announcement was authorised by Aaron Gates.

For further information please contact Aaron Gates on +61 8 9282 5889.

Eden Innovations Ltd | Telephone +61 8 9282 5889 Level 15, 197 St George’s Terrace, Perth, Western Australia 6000, Australia | edeninnovations.com

Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2021

Note Revenue Other income Changes in inventories Raw materials and consumables used Depreciation and amortisation expense Employee benefits expense Finance costs Legal and consultants Management fees Other financial items Other expenses Travel and accommodation Loss before income tax Income tax (expense)/benefit Loss for the year Other Comprehensive Income / (Loss) Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve Total Other Comprehensive Income / (Loss), net of tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic/Diluted loss per share (cents per share) 2	Consolidated Group 2021 $ 2020 $ 3,282,822 2,427,105 7,380 4,034 1,211,995 (54,646) (2,159,214) (504,926) (1,278,892) (1,290,148) (4,156,472) (5,482,160) (747,810) (477,371) (614,303) (948,088) (300,000) (281,250) 105,115 19,409 (946,245) (2,199,101) (163,135) (346,640)
	(5,758,759) (9,133,782) - 27,791
	(5,758,759) (9,105,991) (890,420) 482,298
	(890,420) 482,298 (6,649,179) (8,623,693)
	(0.2912) (0.5316)

The accompanying notes form part of these financial statements.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Lease liabilities Other liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest bearing liabilities Lease liabilities Other liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated Group 2021 $ 2020 $ 2,175,637 1,388,683 568,709 396,366 1,840,582 701,781 163,083 98,084
	4,748,011 2,584,914
	10,607,478 11,999,422 9,123,044 8,223,113
	19,730,522 20,222,535
	24,478,533 22,807,449
	755,188 781,774 4,771,126 816,566 2,302 - 133,337 96,615 171,341 180,313
	5,833,294 1,875,268
	486,143 5,181,439 10,413 - 7,951 18,230
	504,507 5,199,669
	6,337,801 7,074,937
	18,140,732 15,732,512
	114,736,287 105,503,776 8,819,894 9,885,426 (105,415,449) (99,656,690)
	18,140,732 15,732,512

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2021

Balance at 30 June 2019 Shares issued during the year, net of issue costs Share based payments during the year Loss for year Other comprehensive income Total comprehensive income/(loss) Balance at 30 June 2020 Shares issued during the year, net of issue costs Share based payments during the year Loss for year Other comprehensive income Total comprehensive income/(loss) Balance at 30 June 2021	Consolidated Group Fully Paid Ordinary Shares Share based Payment Reserve Foreign Currency Translation Reserve Accumulated Losses Total $ $ $ $ $ 102,636,700 8,134,763 818,970 (90,550,699) 21,039,734 2,867,076 - - - 2,867,076 - 449,395 - - 449,395 - - - (9,105,991) (9,105,991) - - 482,298 - 482,298
	- - 482,298 (9,105,991) (8,623,693)
	105,503,776 8,584,158 1,301,268 (99,656,690) 15,732,512
	9,232,511 - - - 9,232,511 - (175,112) - - (175,112) - - - (5,758,759) (5,758,759) - - (890,420) - (890,420)
	- - (890,420) (5,758,759) (6,649,179)
	114,736,287 8,409,046 410,848 (105,415,449) 18,140,732

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2021

	Consolidated	Group
	2021	2020
	$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	3,184,141	2,441,797
Payments to suppliers and employees	(8,293,187)	(9,729,590)
Income taxes (paid)/received	-	27,791
Interest paid	(444,289)	(119,376)
Interest received	5,808	3,688
Net cash used in operating activities	(5,547,527)	(7,375,690)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(459,981)	(97,120)
Payment for research and development	(1,449,268)	(2,180,633)
Net cash used in investing activities	(1,909,249)	(2,277,753)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares, net of issue costs	8,823,011	2,843,473
Proceeds from borrowings, net of borrowing costs	-	8,125,557
Repayment of borrowings	(372,555)	(3,122,254)
Net cash provided by financing activities	8,450,456	7,846,776
Net increase/(decrease) in cash held	993,680	(1,806,667)
Net increase/(decrease) due to foreign exchange movements	(206,726)	(22,205)
Cash at beginning of financial year	1,388,683	3,217,555
Cash at end of financial year	2,175,637	1,388,683

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

NOTE 1: BASIS OF PREPERATION

The financial information included in this document for the year ended 30 June 2021 is unaudited. The financial information does not constitute the Eden Group’s (the Group) full financial statements for the year ended 30 June 2021, which will be approved by the board, reported on by the auditors and filed with the Australian Securities and Investment Commission. The Group’s full financial statement will be prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

The financial information in this document for the year ended 30 June 2021 has been prepared on the basis of accounting policies and methods of computation consistent with those applied in the 30 June 2020 financial statements contained within the 2020 Annual Report of the Group. As required and unless stated otherwise, comparative statutory financial information for the Group has been presented for the 2020 financial year. Comparative figures have been prepared on the same basis as the current year figures.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current year. The new and revised Standards and amendments thereof and Interpretations do not have any material impact on the disclosures or on the amounts recognised in the Group's consolidated financial statements.

NOTE 2: EARNINGS PER SHARE

NOTE 2: EARNINGS PER SHARE
a. Reconciliation of earnings to profit or loss Profit/(loss) Earnings used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS	2021 $ 2020 $ (5,758,759) (9,105,991)
	5,758,759) (9,105,991) 1,977,324,724 1,712,911,601

The options on issue are not potentially dilutive shares.

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Eden Innovations Ltd Unaudited Preliminary Financial Report For the year ended 30 June 2021

NOTE 3: SEGMENT REPORTING

The Group has identified its operating segments based on internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining allocation of resources. Activities of the Group are managed on Group structure basis and operating segments are therefore determined on the same basis. In this regard the following list of reportable segments has been identified.

• Eden Innovations LLC – US EdenCrete® sales and development and US Optiblend® sales, service and manufacturing.

• Eden Innovations (India) Pvt Ltd – Optiblend® sales, service and manufacturing in India.

2021 External sales Internal sales Total segment revenue Segment Result Unallocated expenses Result from operating activities Finance costs Loss before income tax Income tax benefit Loss after income tax Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation and amortisation Impairment expense 2020 External sales Internal sales Total segment revenue Segment Result Unallocated expenses Result from operating activities Finance costs Loss before income tax Income tax benefit Loss after income tax Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation and amortisation Impairment expense	Eden Innovations LLC Eden Innovations India Pvt Ltd Eliminations Consolidated Entity $ $ $ $ 2,236,127 1,046,695 - 3,282,822 7,749 - (7,749) -
	2,243,876 1,046,695 (7,749) 3,282,822
	(3,312,621) 680,342 (139,678) (2,771,957) (2,238,992) (5,010,949) (747,810) (5,758,759) - (5,758,759) 13,922,062 950,139 - 14,872,201 9,606,332 24,478,533 6,027,806 239,960 - 6,267,766 70,035 6,337,801 453,577 2,186 - 455,763 745,179 966 532,747 1,278,892 - - - - 2,271,499 155,606 - 2,427,105 2,072,757 - (2,072,757) -
	4,344,256 155,606 (2,072,757) 2,427,105
	(5,744,154) (109,036) (253,601) (6,196,152) (2,549,620) (8,656,411) (477,371) (9,133,782) 27,791 (9,105,991) 14,194,405 276,950 - 14,471,355 8,336,094 22,807,449 6,619,177 526,972 - 7,146,149 (71,212) 7,074,937 97,120 - - 97,120 818,040 - 472,108 1,290,148 - - 9,604 9,604

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